Texas’ high-tech sector ended the year on a soft note, according to the data released by the Texas Workforce Commission and seasonally adjusted by the Dallas Fed. Overall high-tech employment fell by 3,100 jobs (a 4 percent annualized decline) in the fourth quarter, largely offsetting the gains made earlier (see table). In 2006, Texas high-tech employment was up by 2,500 jobs, a mere 0.8 percent increase.

Texas’ high-tech manufacturing sector expanded modestly in the fourth quarter, adding 100 jobs (Chart 1). Employment gains came largely from semiconductor and communication equipment manufacturers, which together added 400 jobs and offset losses in the computer and peripheral equipment manufacturing sector—down 300 jobs (Chart 2).

Chart 1

Chart 2

The high-tech service sector put in a weak performance as well during the quarter, shedding 3,200 jobs (Chart 3). Employment growth in computer systems design services stalled, while payrolls in the telecommunications and Internet-service-providing industries fell by 2,300 jobs and 900 jobs, respectively. Despite the lackluster fourth quarter performance, for the year Texas’ high-tech service sector added 2,700 jobs on net, at a 1.3 percent pace.

Chart 3

Notes All data are seasonally adjusted by the Federal Reserve Bank of Dallas. For more information on the necessity of seasonally adjusting economic data, see DataBasics, “Seasonally Adjusting Data.” The employment data used in this analysis have been benchmarked to third quarter 2006 by the Federal Reserve Bank of Dallas. For additional information or questions, please contact Laila Assanie at (214) 922-5191.